Wonder Brands picks up $20M, aims to build marketplace of Latin American e-commerce brands

E-commerce roll-up companies are big in the United States, and Wonder Brands wants to be that for Latin America.

The Mexico-based company closed on $20 million in seed funding, co-led by ALLVP and Mountain Nazca, with participation from CoVenture, Victory Park Capital, GFC, QED (Fontes), Korify Capital and Endeavor Catalyst.

Wonder Brands co-founders Nicolás Gonzalez Luna and Federico Malek came together to start the company in January 2021 to acquire digital brands in the MercadoLibre and Amazon ecosystem. It then leverages its technology to scale their operations and grow sales by taking care of the marketing, analytics, supply chain management and working capital needs of the companies. It focuses on companies in the areas of home and garden, sports and fitness, beauty and personal care.

“MercadoLibre has a larger share, but Amazon is entering the region quickly, so there is not one dominating marketplace. MercadoLibre may have half the market, but then it is more balanced between a number of different platforms,” Gonzalez Luna told TechCrunch. “That diversification means operations here are more complex than the classic Amazon seller. Negotiations take longer and require more discussion about who you are to get the trust in you. That’s why we will be doing fewer, but larger deals than our U.S. counterparts.”

Malek’s background is on the commerce side, having worked at Argentinian insurtech company iunigo.com before founding e-commerce fulfillment company Avenida.com, which was acquired by Groupon in 2010. He then worked as Groupon’s managing director in the region. He knew Gonzalez Luna, whose background includes Goldman Sachs where he focused on M&A.

Michael Breitstein, principal at CoVenture, said his firm has made a variety of investments on the debt and equity sides of e-commerce and believes Malek and Gonzalez Luna provide a “great one-two punch” with their backgrounds, as well as the ability to raise capital and build out a platform.

Though there is a lot of competition to acquire digitally native companies in the $1 million revenue range, Malek said Wonder Brands will focus on larger sellers and operators, with a deal target of at least $5 million in revenue. They are also taking a “buy and build” approach rather than the “buy and consolidate” business model many of the other roll-up companies have, he added.

With its approach, the company’s goal is to enable its acquired companies to sell on multiple channels. It provides support in four areas: category management and brand development, marketing and performance, technology to automate processes like inventory and logistics and operations to manage all of the channels needed. For example, in Latin America, inventory has to be consolidated into one warehouse, but then separated depending on the sales channel, Malek.

Acquiring and scaling companies is big business. London-based Hahnbeck Business Systems, an e-commerce M&A firm that tracks funding to FBA (fulfillment by Amazon) acquirers all over the world, reports that e-commerce roll-up companies raised $7.24 billion in disclosed funding to date.

According to the different sources, reports say Latin American e-commerce company MercadoLibre has a market cap of between $70 billion and $94.billion. Meanwhile, marketplace merchants accounted for 55% of units sold on Amazon.com, according to the retailer. In 2020, that accounted for $300 billion in sales, according to Marketplace Pulse estimates based on Amazon disclosures.

The seed financing enables Wonder Brands to invest in building a team to focus on the four support areas and marketing. The company has 20 employees currently and plans to triple that in the next month. The funding is also complementing larger debt facilities that the company has available to acquire brands. Its target is to make six or seven acquisitions this year.

The company is on target to achieve $55 million in revenue by the end of the year and will then move toward $100 million in revenue in the next 12 months, Malek said. It currently operates in Mexico and plans to begin operations in Brazil by the end of 2021.

 

#allvp, #amazon-com, #coventure, #e-commerce, #ecommerce, #federico-malek, #funding, #groupon, #latin-america, #mercadolibre, #michael-breitstein, #mountain-nazca, #nicolas-gonzalez-luna, #paypal, #recent-funding, #retailers, #startups, #supply-chain-management, #tc, #victory-park-capital, #wonder-brands

Kaszek Ventures leads a $15 million round in Chilean asset management startup, Fintual

Like other financial sectors in Latin America, the retail investing space is getting a facelift by local tech startups that are cashing in on the untapped potential for democratizing asset management in the region. One of those startups is Chilean-based Fintual, which today announced a $15 million round led by Kaszek Ventures, the largest fund in Latin America.

Fintual is an automated passive investment platform that allows the average person in Chile or Mexico to invest in mutual funds containing ETFs (Exchange Traded Funds), investment vehicles that aren’t as well known, or as readily accessible in Latin America.

“The idea that got to me was that we were allowing people to invest in the long term, we enable them to invest in instruments they didn’t have access to before,” said Pedro Pineda, co-founder and CEO of Fintual.

Before starting Fintual in 2018 with his three co-founders, Pineda was an astronomer and an entrepreneur, who built and sold a Groupon copycat company in Chile called “Queremos Descuentos” (We Want Discounts) for just over $1 million when he was 28. 

After the exit, he admits he was a bit lost in life. 

“One day I decided that I wanted to do only the things that I wanted to do and with the people I wanted to do it with,” he said.

He traveled for a couple of years, and learned to code, among other things, until Omar Larré, Fintual’s current CIO, presented him with the idea for the business. 

Larré had been a portfolio manager at Banco Itau, Brazil’s biggest bank by total assets, and he saw the gap in the market: investing was not set up for the average person. The annual fees were too high, the minimum amount required to invest was too high, and there was a penalty when you removed your money. Additionally, the transaction takes a certain amount of financial know-how that most people don’t possess.

For Pineda, disrupting the financial sector also seemed like a lot of fun, he thought.

“I liked the idea of challenging the financial banks, and you can’t do that without technology. We have this super tool that my parents didn’t have, and you can disrupt an entire industry,” Pineda told TechCrunch.

While traditional mutual funds in Chile and Mexico charge up to 6.45% and 5% annually, Fintual charges 1% annually of assets managed. Additionally, Fintual doesn’t require a minimum investment nor a minimum amount of time invested, and users can take their money out any time with no penalties. 

“It’s different than the U.S.; we invest way less than you do; by a factor of 10 maybe,” Pineda said, comparing the investment rate in Chile.

In 2018, the company was accepted into Y Combinator and became the first Chilean startup to go through the prestigious accelerator. It has been growing exponentially ever since and today it serves 57,000 clients in Chile and Mexico.

Below is a table that shows their growth including money managed and percent growth each year since launch.

Assets Under Management (USD)* Annual Growth
May 2018              1.2 M
May 2019              12.9 M 1075%
May 2020               87.6 M 679%
May 2021               480.7 m 548%

    *Each figure corresponds to the end of each month.

The current raise will be used to grow the company’s operations in Mexico, expand to other countries — namely Colombia and Peru — and grow its tech team. 

In addition to Kaszek, other investors to date include YC, ALLVP, and angel investors such as Plaid’s CTO, Jean-Denis Greze, and Cornershop’s founder Oskar Hjertonsson. To date, the company has raised about $15.2 million.

Fintual’s impressive growth speaks for itself, but Kaszek’s co-founder and managing partner, Nicolas Szekasy, said the fund has been following Fintual since its early days, and he was impressed with the niche market the team identified and even more impressed with the user experience the company had developed which has, in turn, fueled its growth.

#apps, #asset-management, #bank, #chile, #colombia, #cto, #finance, #funding, #fundings-exits, #groupon, #investment, #investment-fund, #kaszek-ventures, #latin-america, #mexico, #mutual-funds, #peru, #plaid, #startup-company, #startups, #united-states, #venture-capital, #y-combinator

From pickup basketball to market domination: My wild ride with Coupang

A month ago, Coupang arrived on Wall Street with a bang. The South Korean e-commerce giant — buoyed by $12 billion in 2020 revenue — raised $4.55 billion in its IPO and hit a valuation as high as $109 billion. It is the biggest U.S. IPO of the year so far, and the largest from an Asian company since Alibaba’s.

But long before founder Bom Kim rang the bell, I knew him as a fellow founder on the hunt for a good idea. We stayed in touch as he formed his vision for what would become Coupang, and I built it alongside him as an investor and board member.

As a board member, I’ve observed a brief quiet period following the IPO. But now I want to share how exactly our paths intersected, largely because Bom exemplifies what founders should aspire to and should seek: big risks, dogged determination, and obsessive responsiveness to the market.

Bom fearlessly turned down an acquisition offer from then-market-leader Groupon, ferociously learned what he didn’t know, made a daring pivot even after becoming a billion-dollar company, and iteratively built a vision for end-to-end market dominance.

Why I like talking to founders early

In 2008, I met Bom while playing a weekend game of pickup basketball at Stuyvesant High School. We realized we had a mutual acquaintance through my recently-sold startup, Community Connect Inc. He told me about the magazine he had sold and his search for a next move. So we agreed to meet up for lunch and go over some of his ideas.

To be honest, I don’t remember any of those early ideas, probably because they weren’t very good. But I really liked Bom. Even as I was crapping on his ideas, I could tell he was sharp from how he processed my feedback. It was obvious he was super smart and definitely worth keeping in touch with, which we continued to do even after he relocated to go to HBS.

I soon began investing in and incubating businesses, starting mostly with my own capital. When I got a call from an executive recruiter working for a company in Chicago called Groupon — who told me they were at a $50 million run rate in only a few months — I became fascinated with their model and started talking to some of the investors, former employees, and merchants.

Inspired, and as a new parent, I decided to launch a similar daily-deal business for families: Instead of skydiving and go-kart racing, we offered deals on kids’ music classes and birthday party venues. While I was working on this idea, John Ason, an angel investor in Diapers.com, said I should meet with the founder and CEO Marc Lore. By the end of the meeting, Marc and I etched a partnership to launch DoodleDeals.com co-branded with Diapers.com. The first deal did over $70,000 — great start.

I’ve observed a brief quiet period following the IPO. But now I want to share how exactly our paths intersected, largely because Bom exemplifies what founders should aspire to and should seek: big risks, dogged determination, and obsessive responsiveness to the market.

All that time, I kept in touch with Bom. In February 2010, we were catching up over lunch at the Union Square Ippudo, and he asked if I had heard of Buywithme, a Boston-based Groupon clone. He hadn’t yet heard about Groupon, so I explained the business model and shared the numbers. He thought something similar might transfer well to South Korea, where he was born and his parents still lived.

This kind of conversation is exactly why I love working with founders early, even before the idea forms: You learn a lot about them as they explore, wrestle with uncertainty, and eventually build conviction on a business they plan to spend the next decade-plus building. Ultimately, success comes down to founders’ belief in themselves; when you develop the same belief in them as an investor, it is pretty magical. I was starting to really believe in Bom.

The idea gets real — and moves fast

I'm not Korean — I am ethnically Chinese — so Bom put together slides on the Korean market and why it was perfect for the daily-deal model. In short: a very dense population that’s incredibly online.

I’m not Korean — I am ethnically Chinese — so Bom put together slides on the Korean market and why it was perfect for the daily-deal model. In short: a very dense population that’s incredibly online. Image Credits: Ben Sun

I told Bom he should drop out of business school and do this. He said, “You don’t think I can wait until I graduate?” I responded, “No way! It will be over by then!”

First-mover advantage is real in a business like this, and it didn’t take Bom long to see that. He raised a small $1.3 million seed round. I invested, joined the board. Because of my knowledge of the deals market and my entrepreneurial experience, Bom asked me to get hands-on in Korea — not at all typical for an investor or even a board member, but I think of myself as a builder and not just a backer, and this is how I wanted to operate as an investor.

Once he realized time was of the essence, Bom was heads down. For context, he was engaged to his longtime girlfriend, Nancy, who also went to Harvard undergrad and was a successful lawyer. Imagine telling your fiancée, “Honey, I am dropping out of business school, moving to Korea to start a company. I will be back for the wedding. Not sure if I will ever be coming back to the U.S.”

I emailed Bom, saying: “Bom — honestly as a friend. Enjoy your wedding. It is a real blessing that your fiancée is being so supportive of you doing this. Launching a site a few weeks before the wedding is going to be way too distracting and she won’t feel like your heart is in it. Launching a few weeks later is not going to make or break this business. Trust me.”

Bom didn’t listen. He launched Coupang in August 2010, two weeks before the wedding. He flew back to Boston, got married, and — running on basically no sleep — sneaked out for a 20-minute nap in the middle of his reception. Right after the wedding, he flew back to Seoul. Nancy has to be one of the most supportive and understanding partners I have ever seen. They are now married and have two kids.

Jumping on new distribution, turning down an acquisition offer

#asia, #ben-sun, #column, #coupang, #e-commerce, #ec-column, #ec-consumer-applications, #ec-ecommerce-and-d2c, #ecommerce, #groupon, #livingsocial, #softbank, #softbank-vision-fund, #south-korea, #tc

Jake Paul looks to knock out the venture capital world with Anti Fund

During every economic boom, there are startup investors who appear on the scene from new corners. Some churn out; others earn the respect of the old guard over time.

Jake Paul would be happy to be in the latter camp. Then again, the 24-year-old didn’t become a social media star by being conventional. Little wonder that Paul is now jumping into venture capital with an outfit that’s branded the Anti Fund. Newly formed with serial entrepreneur Geoffrey Woo, the endeavor is traditional in some ways but has a decidedly different point of view, say the two.

Some of the basics: Anti Fund is not a discrete pool of capital but is instead using AngelList’s Rolling Funds platform, which enables investors to raise money through a quarterly subscription from interested backers. Among those who’ve already committed capital are Marc Andreessen and Chris Dixon of Andreessen Horowitz.

Why choose a rolling fund instead of a traditional fund? For one thing, Paul and Woo were drawn to its Rule 506(c) structure, which enables issuers to broadly solicit and generally advertise an offering. Because Anti Fund plans to focus largely on consumer-focused brands and next-generation creator platforms in particular, “we want to be able to promote and advertise our fund,” says Woo, who most recently founded a nutrition-based food and beverage company and earlier in his career sold a company to Groupon.

Paul also wants to ensure his fans can get involved if they want. “I have followers are different reasons, and they want to be involved in what I’m doing. If they’re involved in our fund, then that’s more people rooting for us and our portfolio companies to win. We almost create this army that’s pushing all of these companies forward.”

Anti Fund plans to write checks of between $100,000 and $1 million to one to two startups every quarter. The goal, says Paul, is to be the “biggest rolling fund on AngelList” investing “around $10 million to $20 million a year.”

Anti Fund is just the newest effort to come from the world of social media influencers. As we reported earlier this month, the management company of another YouTube star, MrBeast, has dived into the world of venture capital with a $20 million fund it assembled with commitments from social media creators. Dispo, a photo-sharing app cofounded by YouTube star David Dobrik also attracted widespread attention and funding earlier this year. Not last, a new startup called Creative Juice just raised funding to provide equity-based financing to YouTube creators. MrBeast, whose real name is Jimmy Donaldson, is among its investors.

“I think a lot of creators with newfound wealth — a lot of YouTubers or Instagram models — don’t necessarily know what to do with their money,” says Paul, who has already diversified into boxing, making his professional boxing debut last year. “I’m trying to lead the way.”

Neither Paul nor Woo is new to startup investing. Woo has invested in roughly 20 startups on his own, including Paribus, an email widget that saved consumers money and that was acquired by Capital One. Paul, meanwhile, previously cofounded another small venture outfit called TGZ Capital that he says participated in the funding rounds of 15 startups.

One of these is Quip, a seven-year-old oral care company that has raised $62 million in funding, according to Crunchbase. Another company backed by Paul is Triller, a social video app that briefly became the most-downloaded free app in the App Store last summer when bigger rival TikTok was facing an uncertain future in the U.S.

Triller has since lost enough of that momentum that talk of going public via a special purpose acquisition vehicle has yet to lead to a tie-up, six months after the company reportedly began exploring the possibility. Still, as a stakeholder, Paul is keeping it in the headlines, including by providing it with exclusive rights to stream a pay-per-view boxing match between himself with former MMA wrestler Ben Asken on April 17.

Interestingly, it’s because Paul moved from L.A. to Miami to train for the fight that he met Woo, a Californian who visited Miami this past January for what was supposed to be a weekend trip and wound up staying. The two say they happened to hit it off at a tech event and, after establishing they had mutual friends, connected over their interest in performance nutrition, with Paul investing in Woo’s newest company, HVMN.

Last month, they decided to partner on Anti Fund, too.

Whether the two succeed as business partners will take time to learn. Certainly, they both have a strong work ethic. Woo has started three companies since graduating from Stanford with a computer science degree. Though Paul makes what what seems an inordinate amount of money for creating YouTube videos, he has created thousands of them in order to amass his more than 20 million followers.

It’s also clear that, as with his social media career, Paul is taking boxing seriously. During his most recent fight, in November, he knocked out former NBA player Nate Robinson in the second round. His first boxing match, against fellow YouTuber AnEsonGib in January of last year, also ended in a knockout just 2 minutes and 18 seconds into the fight.

Many professional athletes see the fights as mere stunts, given Paul’s famous made-for-video antics, from a short-lived marriage, to disregarding the concerns of neighbors in West Hollywood, to being charged by police last June for criminal trespass and unlawful assembly connected with the looting of an Arizona mall.

An obvious risk is that the best deal-makers in the world will see Anti Fund as a stunt, too, or else that something that Paul says or does will ruffle feathers. As industry watchers know, investors’ excitement over Dobrik’s Dispo dissipated quickly after Business Insider first detailed various accusations of misconduct against members of the Dobrik’s online squad, including an accusation of rape against one of Dobrik’s friends that allegedly took place during a video shoot.

Paul, who finished high school online in order to pursue a career as an influencer, is well aware of the Dobrik scandal. It’s because he has grown up in plain view, in fact, that he’s not concerned about something from his past threatening his future.

“It’s definitely [risky to be in my position]. Your life is put on display when you choose to be a celebrity and specifically a vlogger. But because I’ve lived online, everyone’s seen everything already,” he says.

He also thinks that “VCs and people in the business world understand more and more how to work” with influencers and other celebrities who have enormous followings and are bringing them along as their careers evolve. “At the end of the day,” he says of business partners, “if someone is a good person and you have a relationship established with them, that’s what really matters.”

#angellist, #chris-dixon, #groupon, #influencer, #marc-andreessen, #miami, #social, #social-media, #tc, #triller, #venture-capital, #youtube

UK on-demand supermarket Weezy raises $20M Series A led by NYC’s Left Lane Capital

Weezy — an on-demand supermarket that delivers groceries in fast times such as 15 minutes — has raised $20 million in a Series A funding led by New York-based venture capital fund Left Lane Capital. Also participating were UK-based fund DN Capital, earlier investors Heartcore Capital and angel investors, notably Chris Muhr, the Groupon founder.

Although the company hasn’t made mention of a later US launch, the presence of US investors would tend to suggest that. Weezy is reminiscent of Kozmo, the on-demand groceries business from the dotcom boom of the late ’90s. However, it differs from Postmates in that it doesn’t do pickups.

The cash injection will be used to expand its grocery delivery service across London and the broader UK, and open two fulfillment centers across London. Some 40 more UK sites are planned by the end of 2021 and it plans to add 50 new employees in the next 4 months.

Launched in July 2020, Weezy uses its own delivery people on pedal cycles or electric mopeds to deliver goods in less than 15 minutes on average. As well as working with wholesalers, it also sources groceries from independent bakers, butchers and markets.

It has pushed at an open door during the pandemic. In Q2 2020 half a million new shoppers joined the grocery delivery sector, which is now worth £14.3bn in the UK, according to research.

Kristof Van Beveren, Co-founder and CEO of Weezy, said in a statement: “People are no longer happy to wait around for deliveries, and there is strong demand for a more efficient service.”

Weezy’s co-founders are Kristof Van Beveren and Alec Dent. Van Beveren is formerly from the consumer goods world at Procter & Gamble and McKinsey & Company, while Dent headed up operations at UK startup Drover and business development at BlaBlaCar.

Harley Miller, managing partner, Left Lane Capital, commented: “Weezy’s founding team have the right balance of drive, experience and temperament to lead in e-commerce innovation
and convenience within the UK grocery market and beyond.”

Nenad Marovac, founder and managing partner, DN Capital, said: “Even before the pandemic, interest in online grocery shopping was on the rise. The first time I ordered from Weezy, my delivery arrived in seven minutes and I was hooked.”

#alec-dent, #delivery, #distribution, #dn-capital, #europe, #grocery-store, #groupon, #heartcore-capital, #kristof-van-beveren, #left-lane-capital, #london, #managing-partner, #marketing, #mckinsey-company, #nenad-marovac, #new-york, #procter-gamble, #retailers, #tc, #united-kingdom, #united-states, #weezy

Investors drop off $33 million for Chowbus, a delivery service for ‘mom and pop’ Asian restaurants

When big platforms have carved out large swaths of the delivery market, the best thing for an upstart company to do is to specialize.

For Chowbus, that meant building a food-delivery business that finds restaurants whose cuisines specialize in regional cuisines from Northern and Southern China, Japan, Korea, Taiwan, Thailand, and Vietnam.

It’s a strategy that has now netted the company $33 million in financing led by the Silicon Valley-based investment firm Altos Ventures and New York’s Left Lane Capital. Hyde Park Angels, Fika Ventures, FJ Labs and Silicon Valley Bank also participated in the round.

Founded four years ago in Chicago by Suyu Zhang and Linxin Wen, the company said that its goal was to connect people with authentic Asian food that’s not easy to find on delivery apps. Over the past year, the company touted significant growth in its business, a traction that can be reflected in its decision to bring on the former chief operating officer of Jump Bikes, Kenny Tsai, as its chief operating officer, and Jieying Zheng, a former Groupon product leader as its head of product.

“When we say we’re true partners to the restaurants we work with, we mean it. By eliminating hidden fees, helping them showcase their best dishes, and other efforts we make on their behalf, we really go the extra mile to help our restaurant partners succeed,” said Wen, Chowbus’ chief executive, in a statement. “We only succeed if they do.”

And seemingly, Chowbus is succeeding. The company raised $4 million in its first round of institutional funding just last year and its rise has been precipitous since then.

The Chicago-based company said it would use its new funding to expand to more cities across the US and add new products like a “dine-in” feature allowing diners to order and pay for their meals on their phone for a contactless experience at restaurants in cities that have flattened the curve of COVID-19 infections and are now reopening. 

Chowbus pitches its lack of hidden fees and footprint across 20 cities in North America including New York, Boston, Philadelphia, Chicago, Atlanta, Los Angeles, the Bay Area, Seattle, and many other cities across North America. In Los Angeles, the company offers menus in Mandarin and Cantonese and allows its users to bundle dishes from multiple restaurants in a single delivery.

Other companies are experimenting with specialization as a way to differentiate from the major delivery services that are on the market. Black and Mobile, which launched in Philadelphia but is in the process of expanding across the country, is a delivery service focused on Black-owned restaurants and food stores.

Founded by David Cabello, Black and Mobile was started in 2017 by the 22 year-old college dropout. The company launched its first operations outside of Atlanta earlier this month and is available on iOS.

“The market is experiencing a permanent shift from offline to online ordering, a trend that Chowbus is actively driving,” said Harley Miller, Managing Partner at Left Lane Capital . “Focusing on this large and loyal constituency with a vertical-approach to supporting Asian restaurants and food purveyors has allowed Chowbus to differentiate itself on both sides of the marketplace. The capital efficiency with which they have operated, relative to the scale achieved, is extraordinarily impressive, and not something we often see.”

#altos-ventures, #chicago, #china, #chowbus, #fika-ventures, #fj-labs, #food, #food-delivery, #groupon, #jump-bikes, #left-lane-capital, #los-angeles, #online-food-ordering, #philadelphia, #seattle, #silicon-valley-bank, #taiwan, #tc, #united-states

Data shows which tech roles might be most vulnerable amid layoffs

Layoffs are having a big impact on industries across the board due to COVID-19. This week alone news came out of massive cuts for TripAdvisor, Lyft, and reportedly Juul and Uber.

But according to data tracker Layoffs.fyi, the cuts have affected certain job roles more than others.

Sales and customer success roles are the most affected by post-coronavirus startup layoffs, crowd-sourced data shows. Other top categories include engineering and operations roles. 

Earlier this month, restaurant tech startup Toast cut 50 percent of staff. About 70% of those laid off were in the sales or customer success roles. In restaurant review platform Yelp’s layoffs, 67% of cut positions were in the same bucket.

Equity management startup Carta laid off people, too, and about 47 percent of those cuts were in the sales or customer success roles.

It is not hard to make sense of why sales and marketing roles are the most impacted. The very function of these jobs is tied to a healthy market. 

Sales and new deals have slowed or halted altogether for many businesses during the COVID-19 pandemic. This is because social distancing, and overall economic weariness, might not have people spending as much as they normally would have.

The cuts filter out disproportionately to other startup ecosystems, as sales and marketing roles are often based in satellite offices. 

But the cuts don’t just impact sales. In a number of cases, layoffs in one department adversely impact all departments of the company. For example, Carta’s CEO Henry Ward noted that reductions across sales, marketing, onboarding and support will likely seep into other roles as well.  

“As those departments become smaller, many of the teams that support those departments like recruiting, HR, operations, and parts of R&D, have to downsize with them,” Ward wrote in a Medium post. “Even though the analysis starts with customers, it quickly starts affecting all parts of the organization. This makes sense. We exist only because our customers exist and allow us to serve them. And when our customers suffer we suffer too.”

The graph below shows a makeup of roles impacted by COVID-19 related layoffs.

Engineers aren’t immune either. According to the report, engineers historically land high, competitive salaries versus sales roles, which largely are based on commission. In some cases, it means that a company trying to dial back costs needs to look at the highest-paid roles and slim accordingly. 

In Groupon and Eventbrite, engineering roles were the majority of positions that were cut, per Layoffs.fyi. Operations roles were also among the most cut for companies like Ritual and Turo. 

Check out the layoff tracker tool here. Tip us of any cuts you’re hearing or experiences at tips@techcrunch.com, or tweet me at @nmasc_.

#articles, #business, #carta, #ceo, #economy, #eventbrite, #groupon, #henry-ward, #layoff, #lyft, #ritual, #sales, #tc, #tripadvisor, #turo, #uber, #yelp

Tech for good during COVID-19: Sky-high gifts, extra help, and chips

When Roger Lee, the co-founder of Human Interest, heard that San Francisco imposed shelter-in-place orders, he started blogging about layoff news and posting crowdsourced lists of employees who were laid off. His goal was to increase awareness about layoffs and give recruiters a place to search for candidates.

However, one week and 40 startup layoffs later, Lee saw his blog was not going to be able to keep up with the massive number of cuts happening across the country. So, Layoffs.fyi tracker was born and currently receives tens of thousands of visitors every day.

As for how he’s balancing the tracker and Human Interest? Lee noted that he has transitioned to work at the company from a board-level capacity.

Lee’s work is one example of many inspiring initiatives we’re going to showcase this week. Let’s get into the list.

  1. Plan your future adventures. A number of sites have popped up to encourage people to buy gift cards and support their local restaurants. But what about their local tourism industries? Adam Faris, a student at the University of Oregon, launched a coronavirus initiative with a team of folks to support businesses in the action sports and adventure experience space. Faris has aggregated a number of businesses offering discounts on skiing, surfing, whitewater rafting and more to encourage people to support small businesses.
  2. Extra help for developers. YouTeam, a Y Combinator-backed marketplace for building remote development teams, is launching a volunteer developers group. Any startups working on COVID-19-related issues can turn to the group to find technical support to aid them, and apply for free development hours of front-end, back-end or UX support. 
  3. Tiny steps, big impact. Tiny Organics, a child nutrition company, is pledging $10,000 annually to Partnership for Healthier America, which works to make sure kids have access to health food. Tiny Organics also created a special edition plant-based meal, Michelle My Broccoli Belle, and will donate 100% of the proceeds to the Food Bank for New York City. 
  4. Help from above. Skydio is donating dozens of self-flying drones to first responders across the country, as part of its Emergency Response program. The drones do not have speakers and will not be used as a communication mechanism, but instead as a way for fire and police units to see potential issues close up. Skydio will provide training and support at no cost. Additionally, the company is teaming up with Frontline Support, a nonprofit, to source and deliver more than a million units of PPE equipment to the University of Washington Hospital System through its logistical and supply chain systems. 
  5. A safe space. Equal space (=SPACE), co-working space for multicultural, LGBTQ, and women-owned startups, has opened up its doors virtually. =Space is offering resources online for freelancers and small business owners that includes training, workshops, productivity sessions, and wellness talks all free of charge.
  6. Aid for healthcare workers. Work & Co partnered with employees at Adobe, Dropbox, and a number of medical students to create a tool to connect healthcare workers with access to grocery delivery, discounted childcare, and free mental health services. The tool was made with input from doctors, nurses, and medical school faculty to help workers meet their basic needs, beyond PPE. It is currently available in New York.
  7. Bandcamp waives fees. Bandcamp, a music company that lets users directly support artists, announced that it will be waiving fees for artists for a number of select days. Last time the platform waived fees, sales for music and merchandise pulled in $4.3 million for artists. It’s a refreshing way to support artists in a world where concerts are no longer a reality. Read more here
  8. A pro bono portal. The American Bar Association and a justice tech company, Paladin, teamed up to create a portal to connect those impacted by COVID-19 to lawyers working pro bono. LegalZoom and Clio are also connected to the project. Read more here.
  9. Hiring help. Binc, a recruitment company that works with companies like Tiktok, Stripe, Nest, Groupon, and more, has launched a free program to help tech workers find jobs. The company is placing employees in engineering, product, design, market, and recruitment professionals in jobs for no charge until the end of the month.
  10.  Chipping in for COVID. Morning Brew is holding an online poker tournament-turned-fundraiser to raise money for Frontline Foods, which supports restaurants and feeds frontline workers. A donation of $100 is required to play.

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Groupon axes CEO and COO as company looks to mount a recovery during a crisis

While plenty of tech stocks have seen their market caps dive in the past month, Groupon has taken a harder hit than most. The company’s share price has dropped more than 70% in the past five weeks.

The reckoning came for Groupon’s leadership today with both CEO Rich Williams and COO Steve Krenzer ousted. In an announcement, Groupon shared that both execs would be pushed out of their roles and that Groupon’s President of North America Aaron Cooper would serve as interim CEO.

While the impact of COVID-19 on retail across the country will certainly further negatively affect Groupon moving forward, the company was in dire trouble weeks before the crisis fully took root stateside. Groupon took a beating on its Q4 earnings report, where it widely missed expectations and showcased seriously declining revenues.

The company’s board will be leading the search for a full-time chief executive. For the time being, Cooper will be tasked with the company through an undoubtedly rough period as many of its current and potential customers close up shop.

“The disruption created by the global pandemic, however, is significant, and our immediate goal is to help millions of Groupon merchants, customers and employees navigate the massive challenges they face,” interim CEO Aaron Cooper said in a statement.

Groupon’s stock was down a hair on the news, though it has seen some upward movement from its recent all-time low even as the rest of the market has tanked. One wonders whether investors believe that the entire market enduring a crisis could give the company an opportunity to take stock of its future or if they simply think they found the share price’s bottom.

#coronavirus, #covid-19, #groupon, #marketing, #operating-systems, #personnel, #rich-williams, #steve-krenzer, #tc